Regulators seize Colorado National Bank, sell its deposits to Herring Bank of Texas

[Pale Blue Dot]

Source: The Gazette

Federal regulators this afernoon seized Colorado National Bank, the first local bank failure in nearly 20 years, and sold it deposits to Herring Bank of Amarillo, Texas, which will reopen Colorado National's former branches in Colorado Springs, Monument and Peyton on Saturday.

For most consumers, the transition will be seamless with the new bank processing all pending transactions, including checks, direct deposits and loan payments. No deposits are at risk or will be lost. All deposits in any bank are insured up to $250,000 by the Federal Deposit Insurance Corp., a federal agency that will keep all of the failed bank's loans and eventually sell them off to investors along with the bank's foreclosed real estate.

Depositors of Colorado National will automatically become depositors of Herring Bank. Deposits will continue to be insured by the FDIC, the FDIC said today.

Over the weekend, depositors of Colorado National can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual, the FDIC said.

Read more: http://www.gazette.com/articles/bank_50325___article.html/deposits_colorado.html

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That's 3 failures so far tonight, bringing the total for the year to 20.

Let me ask you this: Do you honestly believe that it is only these relatively little banks that are insolvent? If so, why do you believe that?

[Taverner]

1. Oh they're all insolvent

That's the dirty little secret

Question: can we sustain a juggernaut enough to jump back into credit assets?

[UpInArms]

2. Hi PBD! - here's the FDIC link on the three friday night failures -

http://www.fdic.gov/bank/individual/failed/banklist.html

The FDIC is often appointed as receiver for failed banks. This page contains useful information for the customers and vendors of these banks. This includes information on the acquiring bank (if applicable), how your accounts and loans are affected, and how vendors can file claims against the receivership.

This list includes banks which have failed since October 1, 2000.

Bank Name	                                Closing Date	Updated Date

TeamBank, National Association, Paola, KS	March 20, 2009	March 20, 2009
Colorado National Bank, Colorado Springs, CO	March 20, 2009	March 20, 2009
FirstCity Bank, Stockbridge, GA	                March 20, 2009	March 20, 2009

just wait until they are "not too big too fail"

[BumRushDaShow]

3. I was shocked that there were none last week.

So now this week, there's a 3-fer (not counting the 2 Credit Unions that I saw in another thread), and we haven't even reached 6pm Pacific yet.

[KamaAina]

4. I certainly hope that doesn't mean Herring will now be in the hole

because then it would be Red Herring. :P